DCC 211/2009

This case involved a company sponsor who it was said was not an active partner in the company but merely the holder of the license. A key issue was the impact of a supposedly simulated contract and what evidence was required to prove it.

Background Facts:

A Respondent company and an individual in his capacity as the partner and manager of the company filed the action No 516/2008 against the Appellant demanding  the establishment that a agreement dated 11/05/1197 signed between the Second Plaintiff and his friend and between the Defendant was simulated and that under this agreement the Defendant had been entered into the company with 51% of the capital's shares for 153,000 AED and had replaced the previous sponsor of the company and had erased this contract from the commercial register and the Department of Economic Development and the Chamber of Trade and Industry. It had rescinded a sponsorship agreement for the company between the owners of the company and the Defendant.